Proactive Environmental Management Research Articles

Environmental Management and Firm Competitiveness: The Joint Analysis of External and Internal Elements

The impact of proactive environmental management on the competitiveness of a firm is the subject of an ongoing debate, and a review of the existing literature provides no clear conclusion, and, at times, conflicting results. In this paper, we advance the understanding of this relationship through a joint analysis of external (voluntary norms and stakeholders) and internal factors (firm resources), examining their influence on proactive environmental management and whether firms that adopt proactive environmental management achieve competitive advantages in costs and differentiation. Drawing on a data set of 208 firms, this paper fills gaps in the extant literature on the potential for using a contingent approach integrating external and internal aspects. Thus, this work addresses an important gap by presenting a multi-theoretical approach combining two theories, institutional theory and the resource-based view, to recognize the wider influencing factors impacting on environmental management, and showing that those theories are complementary rather than mutually exclusive. We provide managerial implications that can guide managers in their choice of approach, as a way to contribute to the competitive advantage of their firms.

Effectiveness of EMS in Tunisian companies: framework and implementation process based on ISO 14001 standard

This paper reports environmental analysis results of food and tannery Tunisian companies to identify the features of environmental management system (EMS) that is implemented recently. EMS via ISO 14001 has become one of the principal tools used by companies to handle environmental aspects and impacts through their various complex activities interacted with environment. While several companies have implemented and maintained a formal EMS, it has related mainly to their benefits in short term without responding to the sustainable development recommendations and practices. This study focuses on the strong linkage between the EMS effectiveness of food–tannery Tunisian companies and sustainability. A proactive environmental management approach is proposed and adopts a qualitative and quantitative assessment for factor analysis. It provides a strategic EMS framework and principles for sustainability to evolve the future enterprises’ benefits that has a clear influence on environmental performance in long term.

Internalization of Environmental Practices and Institutional Complexity: Can Stakeholders Pressures Encourage Greenwashing?

This paper analyzes the determinants underlying the internalization of proactive environmental management proposed by certifiable environmental management systems (EMSs) such as those set out in ISO 14001 and the European Management and Auditing Scheme (EMAS). Using a study based on 232 usable questionnaires from EMAS-registered organizations, we explored the influence of institutional pressures from different stakeholders and the role of corporate strategy in the “substantial” versus “symbolic” integration of environmental practices. The results highlighted that although institutional pressures generally strengthen the internalization of proactive environmental practices, the influence of stakeholders can either support the integration of these practices or encourage their superficial adoption. For example, while pressure from suppliers and shareholders contribute to corporate greening, pressure from customers and industrial associations tend to encourage greenwashing (i.e., the superficial and misleading adoption of environmental practices). Product quality-oriented strategies also positively influence EMS internalization. The paper sheds light on the institutional complexity underlying the substantial versus symbolic implementation of environmental practices, and questions the dominant isomorphic view of EMS adoption. The paper also bridges the gap between complementary approaches on corporate greening, notably neo-institutional and stakeholder theories.

Green human resource management: a comparative qualitative case study of a United States multinational corporation

This article explores the ways in which a multinational company approaches green human resource management (HRM) in its British, German and Swedish subsidiaries. The authors analyse the similarities and differences in Green HRM approaches in these three European subsidiaries of a US restaurant chain. This enables the comparison of Green HRM practices and behaviours, and considers the factors that influence the subsidiaries in this particular domain. Therefore, this research addresses the current lack of international comparative research in the field of Green HRM. The methodological approach is a multi-case study with 50 participants, using semi-structured interviews and focus groups. The results present evidence of proactive environmental management, reflected through a range of operational and people-centred initiatives across the three European countries. Although there is an overarching commitment to environmental sustainability, the positioning and alignment of the environment and HR function differ amongst the subsidiaries, as does the way in which the subsidiaries choose to engage the workforce in environmental sustainability. The study identified a number of factors that explain the differences in approaches including, amongst others, strategic and performance drivers and cultural dimensions, such as relationships with key stakeholders.

The moderating effect of ‘Green’ HRM on the association between proactive environmental management and financial performance in small firms

Research has shown an association between proactive adoption of environmental management practices and firm performance; however little of this research, particularly in the small firm context, has examined the impact of human resources management (HRM) practices on that association. Using data drawn from a sample of 158 small firms in the Australian machinery and equipment-manufacturing sector, this article contributes an empirical test of the moderating effect of HRM on the association between proactive environmental management and firm financial performance. In so doing, we draw on the concept of ‘Green’ HRM; that is to say, practices aligned with environmental sustainability goals and which aim at developing employees' abilities, motivation and commitment, and involvement in support of those goals at the firm level. The findings reveal that Green HRM positively moderates the association between proactive environmental management and financial performance, such that a high level of Green HRM increases the financial benefits of proactive environmental management compared with low levels of Green HRM. The findings show the added value that Green HRM provides when used as an enabler of proactive environmental management; this study should help allay concerns of small firms about the potential cost burden they may face from increasing governmental and social demands for environmental sustainability.

Leading product-related environmental performance indicators: a selection guide and database

Ecodesign is a proactive environmental management and improvement approach employed in the product development process, which aims to minimize the environmental impacts caused during a product's life cycle and thus improve its environmental performance. The establishment of measurable environmental performance indicators for the product development process is often cited as a successful factor for effective ecodesign implementation, since it enables setting targets and monitoring achievements towards the accomplishment of environmental ambitions. However, companies still face difficulties in the selection and application of environmental performance indicators – a more structured approach is still lacking. This paper presents the efforts made to identify and systematize existing leading product-related environmental performance indicators, based on a systematic literature review, and to develop a guide to support the selection of these indicators by manufacturing companies. From the review, 261 environmental performance indicators were identified and systematized in a digital database. The database supports the application of the environmental performance indicators guide, which proposes a five-step approach to support the selection of indicators. Based on improvement opportunities identified from a case study for theory-testing in Denmark, an improved version of the guide was developed and subsequently applied in a case study in Brazil. The results from both evaluations indicate that the guide supported the studied companies in the selection of environmental performance indicators in the context of ecodesign implementation. This paper presents the results of the literature review, the systematization of environmental performance indicators and the support guide.

Exploring role of environmental proactivity in financial performance of manufacturing enterprises: a structural modelling approach

In the backdrop of overwhelming concern for greenhouse gas emission, global warming and overall environmental degradation, many manufacturing enterprises are now integrating their manufacturing philosophy with proactive environmental management approach. It is uppermost in the minds of many whether such environmental proactive approach will also help to improve financial performance of the manufacturing enterprises. This study explores this pertinent issue in the context of manufacturing enterprises of two democratic countries from the east and the west, India and UK respectively. Data collected through a questionnaire validated by invited experts distributed among manufacturing enterprises of India and UK were used to construct the structural model for testing the relationship between environmental proactivity and financial performance. The fitness and robustness of the structural model can be considered adequate. The results indicate positive correlation of environmental proactivity with financial performance, manufacturing based operational performance and non-manufacturing based operational performance. Model equations derived from structural analysis, however, reveal much stronger positive correlation of financial performance with manufacturing based operational practices than with the non-manufacturing based operational practices. The novelty of this research work lies in its managerial implications. It is suggested from the research that the manufacturing enterprises of India and UK should focus more on the manufacturing based operational practices than non-manufacturing based operational practices in order to improve environmental and as well as financial performance.

Corporate governance and proactive environmental management in Novo Hamburgo and neighbouring cities, Brazil.

This study compiled data on environmental auditing and voluntary certification of environment-friendly businesses of the Commercial and Industrial Association of Novo Hamburgo, Campo Bom and Estância Velha and analysed them according to classical environmental management principles: sustainable development and corporate governance. It assessed the level of application of the concepts of corporate governance to everyday business in companies and organisations and estimated how the interconnection and vertical permeability of these concepts might help to make bureaucratic environmental management systemic, proactive and evaluative, changes that may add great value to the operations evaluated. Results showed that, when analysing only audited items not directly defined in legislation, no significant changes were identified. The inclusion of more advanced indices may promote the transition from bureaucratic management, which meets regulated environmental standards only satisfactorily, into proactive and systemic environmental management, which adds value to companies and helps to perpetuate them. Audited and analysed data did not reveal actions that depend on the internal redistribution of power and the interconnection or verticality of attitudes that may materialize concepts of corporate governance.

A Comparison of Regulatory Awareness and Green Supply Chain Management Practices Among Chinese and Japanese Manufacturers

AbstractLeading manufacturers in developed countries generally have high environmental awareness and implement proactive environmental management practices such as green supply chain management (GSCM). However, it is uncertain if smaller manufacturers in developed countries are more proactive than all manufacturers in developing countries. To understand this situation, we carried out surveys among small and medium‐sized Japanese manufacturers, leading Chinese manufacturers and traditional Chinese manufacturers. Statistical results show that leading Chinese manufacturers have the highest awareness of both domestic and international environmental regulations/policies, and implement all GSCM practices at the highest level. Leading Chinese manufacturers and Japanese manufacturers are aware of international environmental regulations/policies, but such awareness only motivates them to implement eco‐design practices. Traditional Chinese manufacturers have limited awareness of international environmental regulations/policies, but such awareness brings all types of GSCM practice. Such results can be helpful for different manufacturers in both developed and developing countries to develop suitable environmental strategies. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Green manufacturing: Relationship between adoption of green operational practices and green performance of brazilian ISO 9001-certified firms

The present work aims at analyzing how the adoption of a proactive environmental management via green operational practices (GOPs) correlates to the Green Performance (GrP) of a given set of ISO 9001-certified firms in Brazil. To this end, we elaborated a conceptual framework about environmental management, GOPs, and GrP. Such theoretical foundation supported the development of empirical research through quantitative analysis. For the analysis, 75 questionnaires were collected from ISO 9001 certified companies. Data was analyzed by with statistical tools such as descriptive analysis, correlation analysis, and Structural Equation Modeling (SEM). The results demonstrate that the adoption of GOPs, in fact, exerts a positive impact on the GrP of the firms. This work contributes to a better understanding of green manufacturing in Brazil’s industrial sector.

A multicriteria method for environmental management system selection: an intellectual capital approach

The adoption of environmental management systems has become more widespread among those firms looking to minimize their environmental impacts. Considering that firms have to select the optimal management system from a set of possible alternatives, this paper presents a novel decision-making approach based on the multicriteria method of analytic network process, in order to evaluate and prioritize the implementation of environmental management system alternatives in for-profit firms. Since several relevant intangible benefits are derived from the adoption of this kind of management system (such as enhancing employees' knowledge and skills, as well as improving corporate reputation), the method integrates and quantifies both financial and non-financial (intellectual capital) value creation criteria in order to identify the alternative that maximizes a firm's total market value. The proposed approach is empirically tested in a group of Spanish olive oil firms with a proactive environmental management orientation, and the results confirm the reliability of the proposed model. Furthermore, the empirical applications reveal that all the olive oil firms attribute great importance to the intangible elements when assessing environmental management systems. These results suggest that it is appropriate to take into account the intellectual capital value resulting from these kinds of management systems, during the decision-making process. The proposed method formalizes the evaluation process that firms already employ; these firms certainly take non-financial capital value creation elements into account, albeit in an intuitive way.

Regulatory Compliance when the Rule of Law Is Weak: Evidence from China’s Environmental Reform

English Abstract: What drives regulatees’ behaviors when the institution of law is weak? This study seeks to answer the question by examining environmental regulation enforcement in China. Based on survey and interview data on Hong Kong-owned manufacturing enterprises in the Pearl River Delta Region, Guangdong Province, we found that their decisions to adopt basic and proactive environmental management practices were less driven by concerns for legality than by their perceptions of the regulators’ actions and gestures. Enterprises adopted basic environmental practices to avoid potential punishment, and they adopted more proactive practices to avoid potentially arbitrary impositions from regulatory officials. Regulated enterprises were more likely to adopt both basic and proactive environmental practices if they had less difficulties understanding the enforced regulations. These findings suggest important ways in which regulatory compliance behaviors in a developmental context may differ from those in Western countries.Chinese Abstract: 在法律制度薄弱的情况下，什么因素影响着受监管者的行为？此项研究通过审视中国环境保护法规的执行来解答这一问题。对位于广东省珠江三角洲的港资企业进行的问卷和采访表明，企业在决定是否采取基本的或是能动的环境管理措施时，基于对监管者的行为和态度的判断，比出于遵守法律的考虑更为重要。为防受惩罚，企业采取了基本的环境管理措施；而当监管官员的管理具有不确定性时，企业采取了更能动的环境管理措施。当被执行的规则更易理解时，企业则更可能采取基本以及能动的环境管理措施。这些研究结果表明在发展中国家，合规行为与在西方发达国家存在重大区别。

Proactive environmental management and performance by a controlling family

Purpose– This study examined how proactive environmental management affects firm performance and whether a controlling family moderates this effect. The paper aims to discuss these issues.Design/methodology/approach– The study adopted content analysis to collect data on listed Taiwanese firms and used cross-sectional regression analysis to examine the relationship between proactive environmental management and firm performance as well as the moderating role of a controlling family.Findings– The results indicated that not all types of proactive environmental management are positively associated with firm performance and that a controlling family might be more effective in low-risk proactive environmental management practices.Research limitations/implications– The focus was on the impact of proactive environmental management from the perspective of stockholders. Future research could investigate its impact on other stakeholders as well.Practical implications– The findings might convince managers that the stereotype of an environment-friendly firm – that the more its green initiatives, the less competitive it becomes – may not necessarily be true. Investing in product-focused pollution prevention could increase revenues and improve performance. Even though process-focused pollution prevention is negatively associated with firm performance, companies are not expected to reduce investment in green processes since they are required for the production of environment-friendly products.Originality/value– This study adopted a multi-dimensional approach to reveal how different types of proactive environmental management affect firm performance. The authors used the controlling family as a moderating variable to determine whether it moderates the relationship between proactive environmental management and firm performance.

The Development of Green Innovation Measurement Based on Inter Rater Agreement Approach: A Preliminary Study

The rising of environmental concerns from customers, buyers, communities, and government regulations have forced company to implement innovative and proactive corporate environmental management such as green supply chain management (GSCM) and green innovation. The aim of the paper is to discuss on the development of green innovation measurement. The data were collected through a questionnaire-based survey from two experts. The data are analyzed using Inter Rater Agreement. The findings show the kappa value is above 80 percent which indicates the perfect agreement between both of the raters on the proposed measurements for green marketing innovation and reverse logistics innovation. By including these two constructs into existing green innovation activity, it is possible to show the complete picture of green innovation to increase the performance of GSCM.

Does Being Green Mediate the Effect of Organizational Characteristics on Performance in High Performing Firms?

A major objective of business organizations is to out-compete their rivals at the market place and dominate it. To achieve this, a miried of strategies are applied. Most involve scanning the environment to take advantage of the changes in tastes and prefences among the customers and instituting measures to serve these tastes. In the past decade and in to the mid and long term future, proactive environmental management is becoming a major strategic issue. This is a fact firms have to deal with. Environmental conciousness is being pussed by legal pressure, customer pressure and decreasing natural resources. A major question that organizations have to contend with is wether being green is more benegitial than its costs to the firms. Due to the costs inccured in 'being green', and the often indirect nature of benefits acrued, many firms tend to lay emphasis to organizational characterists for high performance. These are innovativeness, customer orientation, quality emphasis and management. This paper will review available literature in trying to bring out the relationship between adoptions of green to the above organizational characteristics of high performing firms as a pointer that being green can be incorporated in the organizational characteristics and boost performance. Keyword: Environment, organizational characteristics, high performing organizations, strategy,

Determinants of proactive environmental management practices in Indian firms: an empirical study

Abstract The present study aims to empirically determine the primary factors that have a major influence on adoption of environmental management practices in Indian firms. For this purpose, a theoretical framework has been proposed based on previous studies and a pilot survey that provides broad and specific variables that might have an impact of these practices. This impact has been investigated by conducting factor analysis and stepwise-regression analysis. In order to collect the primary data a questionnaire has been designed for which 104 valid responses (8.5% response rate) have been obtained. The study reveals that internal (holder ship and employees) and market (commercial buyers and suppliers of goods and services) pressures are the significant drivers who govern the adoption of proactive environmental management practices. However, the external pressures from regulatory and societal stakeholders were not found to be important in the Indian context. The analysis further showed that firm's characteristic also play a significant role in defining the positive behavior of firms, as large firms are more proactively engaged in environmental management initiatives. Moreover, firms in the manufacturing, chemical and agriculture sector are likely to have more comprehensive environmental management practices compared to the service sector.

Corporate Water Footprint: Risks, Opportunities, and Management Options for Sustainable Development

For many companies, freshwater is a basic ingredient for their operations, while effluents may lead to pollution of the local hydrological ecosystem. Initially, public pressure has been the most important reason for sustainable business initiatives, but today many companies recognize that failure to manage the freshwater issue raises risks, including damage to the corporate image, threat of increased regulatory control, financial risks caused by pollution, or insufficient freshwater availability for operations. It is therefore interesting to know the specific water requirements of various consumer goods, particularly the water-intensive ones. This paper discusses specialised water reporting instruments such as the ‘water footprint’ calculation method and demonstrates it's usefulness in measuring and monitoring corporate sustainability. The water footprint analysis can highlight how near or far a company is from being sustainable and identify those aspects that have the greatest negative effect on freshwater and entire environment. Also it can highlights further management options and ways that companies address in their use of freshwater as one of the aspects of sustainable business performance, because today, many companies recognise that proactive environmental management contributes to their profitability and competitiveness in green markets.

Motivations for Proactive Environmental Management

This paper examines the extent to which there are differential incentives that motivate the adoption of environmental management practices (EMPs) and pollution prevention (P2) methods. We analyze the role of internal drivers such as managerial attitudes towards the environment and external pressures using both observed characteristics of facilities and perceived pressures. We estimate a structural equation model using survey data from facilities in Oregon that involves simultaneous estimation of the latent dependent and explanatory variables and the two regression equations explaining adoption behavior of EMPs and P2. We find that perceived regulatory pressures and managerial attitudes have a statistically significant impact on the adoption of both EMPs and P2 practices, while market pressures were significant in influencing the adoption of EMPs but not P2 methods. Furthermore; we find that both external regulatory pressures and internal managerial attitudes had a larger impact in motivating adoption by facilities that did not view environmental issues as being a significant concern as compared to facilities that did.

Identifying Factors Affecting Proactive Corporate Environmental Management Practices: The Case of Forest Carbon Offsets

Identifying Factors Affecting Proactive Corporate Environmental Management Practices: The Case of Forest Carbon Offsets

Environmental Sustainability and Human Resource Management Initiatives

The bottom line of sustainability is the economic, environmental and social performance of an organization. Among the three it is quite evident to see organizations focusing on the economic aspect with more rigors to increase economic performance. It is but obvious for organizations to maximize their profits rationally to help them carry on their operations without the threat of solvency. Environmental performance of any organization is seen on two fronts. Either on a voluntary basis or as an impact of policy, fee levied by Government agencies or regulatory boards. Citizens are now aware of issues of environmental performance, thereby voluntary organizations, and forums' of environmentalist influence organizations to abide by the rule and also show initiatives of being environmentally sensitized. The most commonly used measures are to levy a Hefty fine on high level of emissions and incentive of subsidies on lower level of emissions. The focus is on emissions being a reactive action to the program of environmental performance, but, the shift had to be pro-active looking into the energy reductions as an opportunity of performance. During the past two decades, a worldwide consensus has been emerged around the need for proactive environmental management goals. The responses from organizations are seen to be involving strategic decisions and behavior modification for organizations employees. It is not only the management but also the employees who are benefited by the green practices in the organizations. The paper would like to analyze the initiatives taken by the organizations towards environmental performance for sustainability. The study uses stratified sampling technique and has a sample of 66 organizations located in Bangalore. The data examines the human resource initiatives implemented by the organizations as understood by the employees of the organization.